Question 1

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?
A) level of disposable income, new uses of old technologies, and new laws and regulations
B) new technologies, consumer spending patterns, and new laws
C) level of disposable income, consumer spending patterns, and level of interest rates
D) social and cultural trends, level of interest rates, and what people think is "in"
E) new changes in political areas, new laws, and level of disposable income

Accepted Answer

The level of disposable income, consumer spending patterns, and level of interest rates are economic forces that directly affect the financial environment in which entrepreneurs operate.

Question 2

Which of the following is not an example of a social force?
A) changes in interest rates
B) increased interest in healthy foods
C) retirement of baby boomers
D) increased diversity of the workforce
E) increased interest in green products

Accepted Answer

Changes in interest rates are economic forces, not social forces. The other choices all relate to changes or trends in societal attitudes, demographics, or behaviors.

Question 3

The increasing number of spas opening in the United States is attributed to a jump in the number of people trying to deal more effectively with mental health and wellness issues. The increased emphasis on mental health and wellness in the United States is an important:
A) political trend
B) economic trend
C) legal trend
D) social trend
E) technological advances

Accepted Answer

The trend towards increased emphasis on mental health and wellness is a social trend, as it reflects a shift in cultural attitudes and values towards prioritizing self-care and mental well-being. This is reflected in the increase in demand for spa services which cater to these needs.

Question 4

A(n) ________ is a thought, impression, or notion. A(n) ________ is a favorable set of circumstances that creates the need for a new product, service, or business.
A) scheme, notion
B) opportunity, idea
C) idea, design
D) idea, opportunity
E) notion, scheme

Accepted Answer

The first blank refers to a thought or notion, which fits with "idea" in choice D. The second blank refers to a favorable circumstance for a new venture, which is captured by "opportunity" in choice D. The other choices are incorrect because they either have two synonymous words or do not fit the definitions provided.

Question 5

If a new firm was launched to help other firms comply with The Patriot Act, that opportunity was created by:
A) changes in economic forces
B) demographic changes
C) changes in social forces
D) changes in technological forces
E) political actions and regulatory changes

Accepted Answer

The launch of a new firm to help other firms comply with The Patriot Act arises due to political actions and regulatory changes. The Patriot Act is a federal law passed by the United States government in response to the 9/11 attacks. It requires certain companies, especially financial institutions, to comply with specific regulations aimed at preventing terrorist funding. This creates an opportunity for firms to emerge that specialize in helping other businesses comply with the requirements of The Patriot Act. Hence, it is the political actions and regulatory changes that have created this opportunity.

Question 6

Kathryn Kerrigan, the company profiled in the opening feature for Chapter 2, sells shoes. Kerrigan's original idea for the company stemmed from her recognition that:
A) there were no athletic shoes specifically designed for older women
B) there were no fashionable shoes available for young girls
C) there were no low cost women's shoes available in the Chicago area
D) there were no small shoes available for petite women
E) there were no fashionable shoes available for tall women

Accepted Answer

Kathryn Kerrigan recognized a gap in the market for fashionable shoes available for tall women, which led to the founding of her company.

Question 7

The aging of the U.S. population has resulted in several new firms that have been founded to help older Americans stay in their homes longer, as an alternative to assisted living or moving into nursing homes. The aging of the U.S. population is an important ________ that is creating opportunities in many areas for entrepreneurial firms.
A) economic force
B) regulatory force
C) legal force
D) technological advances
E) social force

Accepted Answer

The aging of the U.S. population is a social force, as it pertains to demographic changes and societal trends that influence market opportunities.

Question 8

GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?
A) regulatory changes
B) political changes
C) social forces
D) technological advances
E) economic forces

Accepted Answer

The creation of companies like GasBuddy and GasPriceWatch.com is likely driven by economic forces, as they aim to help consumers save money on gas, which is a response to fluctuating fuel prices and economic concerns related to energy costs.

Question 9

Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.
A) social forces
B) technological advances
C) legal changes
D) regulatory changes
E) economic forces

Accepted Answer

Hulu.com's business opportunity was made possible by technological advances that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.

Question 10

The three ways to identify an opportunity include:
A) observing trends, solving a problem, and finding gaps in the marketplace
B) studying industry trade journals, talking to consumers, and solving a problem
C) observing trends, conducting brainstorming sessions, and studying industry trade journals
D) observing trends, talking to consumers, and finding gaps in the marketplace
E) reading books, solving a problem, and findings gaps in the marketplace

Accepted Answer

The answer of The three ways to identify an opportunity...

Question 11

An opportunity has four essential qualities:
A) attractive, timely, durable, and anchored in a product, service, or business that creates or adds value for its buyer or end user
B) practical, opportune, appropriate, and anchored in a product, service, or business that is efficient and effective
C) realistic, striking, timely, and anchored in a product, service, or business that is timely
D) attention-getting, attractive, timely, and anchored in a product, service, or business that creates or adds value for its buyer or end user
E) attractive, durable, resilient, and opportune

Accepted Answer

The essential qualities of an opportunity include being attractive, timely, durable, and anchored in a product, service, or business that creates or adds value for its buyer or end user. Option A contains all four of these qualities, making it the best choice. Option B only mentions efficiency and effectiveness, which are not necessarily essential qualities of an opportunity. Option C only mentions realism and timeliness, but does not address the importance of creating or adding value. Option D mentions attention-getting, which may not necessarily be an essential quality, and does not mention durability or being anchored in a product or service. Option E mentions durability and resilience but does not address the importance of being attractive or timely.

Question 12

According to the textbook, opportunities are:
A) tough to spot
B) easy to spot in the service sector but tough to spot in the manufacturing sector
C) easy to spot in the manufacturing sector but tough to spot in the service sector
D) easy to spot
E) neither easy nor tough to spot

Accepted Answer

The answer of According to the textbook, opportunities are:
A) tough...

Question 13

Jason Carroll is thinking about starting a chain of fitness centers for people who are 50 years old or older. Which of the following is not an appropriate criteria for Jason to test his idea against?
A) Determine whether the "window of opportunity" is open.
B) Determine whether a fitness center for people who are 50 years or older meets the threshold of being a good idea.
C) Determine the extent to which the notion takes advantage of an environmental trend, solves a problem, or fills a gap in the marketplace.
D) Determine whether opening a fitness center for people 50 years old or older is timely.
E) Determine whether opening a fitness center for people 50 years old or older is a concept that creates value for its buyer or end user.

Accepted Answer

All of the other criteria listed are important for Jason to consider when testing his idea. However, whether or not a fitness center for people 50 years or older meets the threshold of being a good idea is subjective and cannot be tested against specific criteria. It is up to Jason to determine if he believes the idea has potential for success.

Question 14

Which of the following is correct regarding opportunities and ideas?
A) An opportunity and an idea are essentially the same thing.
B) An idea almost always meets the criteria of an opportunity.
C) An opportunity is a thought, an impression, or a notion.
D) An idea is a favorable set of circumstances that creates a need for a new product, service, or business.
E) It's important to discern whether a particular idea meets the tests of an opportunity.

Accepted Answer

While opportunities and ideas are often used interchangeably, they are not the same thing. An idea may be simply a thought or an inspiration, whereas an opportunity is a favorable set of circumstances that creates a potential for business success. Therefore, it is important to evaluate whether a particular idea meets the tests of an opportunity before pursuing it further.

Question 15

Kate Williams is starting a fashion boutique in an upscale mall near Kansas City. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Kate is trying to open her business while the ________ is open.
A) safe harbor
B) window of opportunity
C) portal of entry
D) doorway of opportunity
E) safety zone

Accepted Answer

The phrase "window of opportunity" refers to a specific time period in which a business can realistically enter a new market. This term is often used to describe the optimal time to enter a market before competitors become too established. Therefore, Kate Williams wants to open her store during the "window of opportunity" for her business.

Question 16

The term "window of opportunity," as discussed in Chapter 2, describes the time period in which a firm can:
A) obtain funding or financing
B) hire new employees
C) obtain patent protection for a new product
D) realistically enter a new market
E) get government approval for a regulated product or service

Accepted Answer

The term "window of opportunity" refers to the limited time period during which a firm can realistically enter a new market before the opportunity passes. This could be due to factors such as competition, changes in customer preferences, or changes in technology. Obtaining funding or financing, hiring new employees, obtaining patent protection, or getting government approval may all be important steps for a firm, but they are not necessarily tied to a specific time period known as a "window of opportunity."

Question 17

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on iHearSafe, ZUCA, and J.J. Creations, three entrepreneurial startups. While each firm is different and is successful in its own right, the main point of the feature is to illustrate that:
A) companies are often started by everyday people solving problems in their everyday lives
B) closely monitoring environmental trends is an effective way to identify business opportunities
C) one of the most important points to consider before launching a business is to determine if its window of opportunity is open
D) finding gaps in the marketplace is an effective way of identifying business opportunities
E) both economic and social forces impact the opportunities available to entrepreneurs

Accepted Answer

Everyday people often start companies by solving problems they encounter in their daily lives, as illustrated by the entrepreneurial startups featured.

Question 18

A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.
A) idea
B) scheme
C) design
D) proposal
E) opportunity

Accepted Answer

An opportunity is a favorable set of circumstances that creates a need for a new product, service, or business. An idea is simply a thought or concept, a scheme often has negative connotations of deceit or dishonesty, a design is a specific plan or structure, and a proposal is a formal offer or suggestion.

Question 19

GreatCall is a company that was started to produce cell phones for older people. Many cell phones are too complicated and the buttons are too small for older people to effectively use. Which of the following approaches to identifying an opportunity was most likely the impetus for GreatCall?
A) observing trends
B) studying industry reports
C) solving a problem
D) talking to consumers
E) finding gaps in the marketplace

Accepted Answer

GreatCall identified a problem - cell phones being too complicated for older people - and created a solution by producing cell phones designed for this demographic.

Question 20

Hank Simms is a very capable computer programmer. Recently, he noticed a problem that many programmers have, and thought of a solution to the problem that might represent an opportunity for a new software product. Hank's idea for a new software product is an example of a ________ discovery.
A) serendipitous
B) knowable
C) traditional
D) conventional
E) predictable

Accepted Answer

A serendipitous discovery is an unexpected discovery made while looking for something else. Hank's discovery was unexpected and he stumbled upon it while working on a separate project, making it a serendipitous discovery. The other options (knowable, traditional, conventional, predictable) do not fit the description of Hank's discovery.

Quiz 2: Recognizing Opportunities and Generating Ideas

Economic forces impact the opportunities available to entrepreneurs. Which of the following alternatives reflects a set of economic forces that would be of interest to entrepreneurs?

Which of the following is not an example of a social force?

The increasing number of spas opening in the United States is attributed to a jump in the number of people trying to deal more effectively with mental health and wellness issues. The increased emphasis on mental health and wellness in the United States is an important:

A(n) is a thought, impression, or notion. A(n) is a favorable set of circumstances that creates the need for a new product, service, or business.

If a new firm was launched to help other firms comply with The Patriot Act, that opportunity was created by:

Kathryn Kerrigan, the company profiled in the opening feature for Chapter 2, sells shoes. Kerrigan's original idea for the company stemmed from her recognition that:

GasBuddy and GasPriceWatch.com are companies started to help consumers save money on gas. Which environmental trend is most likely to have provided the impetus for the creation of these companies?

Hulu.com allows people to watch television shows and movies on the Internet. Hulu.com's business opportunity was made possible by ________ that enhanced the ability of television shows and movies to be uploaded to the Internet and played by anyone with a suitable computer and an Internet connection.

The three ways to identify an opportunity include:

An opportunity has four essential qualities:

According to the textbook, opportunities are:

Jason Carroll is thinking about starting a chain of fitness centers for people who are 50 years old or older. Which of the following is not an appropriate criteria for Jason to test his idea against?

Which of the following is correct regarding opportunities and ideas?

Kate Williams is starting a fashion boutique in an upscale mall near Kansas City. She wants to open her store during the time period in which a business like hers can realistically enter the new market. Kate is trying to open her business while the ________ is open.

The term "window of opportunity," as discussed in Chapter 2, describes the time period in which a firm can:

The Savvy Entrepreneurial Firm feature in Chapter 2 focuses on iHearSafe, ZUCA, and J.J. Creations, three entrepreneurial startups. While each firm is different and is successful in its own right, the main point of the feature is to illustrate that:

A(n) ________ is a favorable set of circumstances that creates a need for a new product, service, or business.

GreatCall is a company that was started to produce cell phones for older people. Many cell phones are too complicated and the buttons are too small for older people to effectively use. Which of the following approaches to identifying an opportunity was most likely the impetus for GreatCall?

Hank Simms is a very capable computer programmer. Recently, he noticed a problem that many programmers have, and thought of a solution to the problem that might represent an opportunity for a new software product. Hank's idea for a new software product is an example of a ________ discovery.